30/10/19 Quarterly Report for Q1 of FY20
A decent quarterly result from AER with a third consecutive positive cashflow quarter, albeit a small inflow of $13k. While receipts of $505k were lower than the $554k of 4Q19, there were some one off revenues received last quarter.
A new insurance client was added in the quarter which is positive as insurance clients are AER's largest segment, making up 30% of revenue in FY19.
Importantly though, management stated that the long awaited implementation with Esri is due to launch this quarter, with several clients already targeted as key customers on the Esri platform who could get value from AER's data now available.
I also attended the AGM this year which was very valuable, Kerry and the team were very accomodating with a small product demonstration of how the AER data is being implemented in the Esri software and some examples of how their product drives value for customers. Overall the mood of management and the board is very positive with a lot of expectations for the Esri agreement to drive the scale that AER is capable of. More importantly, I got a lot more confidence of the value of the AER offering to Esri and believe this is a true partnership between the two businesses, not just a reseller agreement where Esri has no incentives to push the AER dataset.